Hunter Estess of New Orleans has a proven record of accomplishment in the real estate industry.
Before
getting on any deal, every serious investor in real estate should ask
and answer a number of questions not only about the property, but also
about the surrounding area. Do rent prices in the area keep up with
inflation? Is the area stable, changing for the better, or
deteriorating?
One of the best places to look for great real
estate deals is the areas that are not very successful themselves, but
are located close to very successful properties and areas.
The
strategy of investing in land or properties with the assumption that
they will significantly go up in value in the future is called land
banking. Land banking is a smart approach in many cases, especially with
areas that have strategic locations. It can bring exponential returns
if the investment is made in the right project.
However, before
the property goes up in value, you will still need to pay taxes and
other charges on it. If the property brings in no income, taxes and
charges need to be added to the investment amount. This is why it makes
sense to keep using the property as currently intended while you wait
for opportunities to arise.
For example, in New York City land
banking may include an investment in an existing parking lot. The goal
may be to build something on the property, but in the short term it may
make sense to continue using the property as a parking lot to have
incoming revenue. That is what many experienced real estate investors
like Hunter Estess do with their projects.
